<PAGE> 1
LOGO
LOGO
JANUARY 31, 1997
CONCORDE FUNDS, INC.
1500 THREE LINCOLN CENTRE
5430 LBJ FREEWAY
DALLAS, TEXAS 75240
TELEPHONE: (972) 387-8258
(FUND INFORMATION)
(800) 294-1699 (ACCOUNT INFORMATION)
CONCORDE FUNDS, INC., (the "FUNDS") is a no load, open-end, diversified
management investment company offering shares in two separate mutual funds, each
with a different investment objective. Concorde Value Fund seeks to produce long
term growth of capital, without exposing capital to undue risk. Concorde Value
Fund will invest principally in undervalued common stocks. Concorde Income Fund
seeks current income, primarily through investing in a diversified portfolio of
income producing securities. Growth of capital is a secondary objective.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
- --------------------------------------------------------------------------------
This Prospectus sets forth concisely the information about the FUNDS that
prospective investors should know before investing. Please read this Prospectus
and retain it for future reference. Additional information about the FUNDS has
been filed with the Securities and Exchange Commission in the form of a
Statement of Additional Information, dated January 31, 1997, which is
incorporated by reference in the Prospectus. Copies of the Statement of
Additional Information will be provided without charge upon request to the FUNDS
at the above address or telephone number.
<PAGE> 2
A MESSAGE FROM THE PRESIDENT OF
CONCORDE FINANCIAL CORPORATION
Concorde Financial Corporation, the investment advisor for Concorde Funds,
Inc., serves as investment advisor and financial counsellor to individuals,
trusts, and qualified plans. In managing assets, our organization's focus has
always been to concentrate on appropriate risk and return. This focus is present
in our managing of the assets of Concorde Value Fund, and the newest member of
our fund family, Concorde Income Fund.
CONCORDE VALUE FUND. In managing equity investments, we believe the best
investment policy is to buy quality, well-managed companies at a discount to
their intrinsic value. We are prepared to hold them for long-term total returns
regardless of what the consensus view of the overall stock market's value
happens to be.
CONCORDE INCOME FUND. In managing a diversified income-oriented portfolio,
we primarily seek current income but also intend to take advantage of
opportunities for capital appreciation and growth of investment income. We
believe this can best be achieved by considering traditional income-producing
securities as well as securities which provide inducements to participate in the
potential growth of an issuer.
We at Concorde Financial Corporation pledge our commitment to the highest
possible standard of professional performance for the benefit of investors in
Concorde Value Fund and Concorde Income Fund.
Sincerely
/s/ GARY B. WOOD
Gary B. Wood, Ph.D.
President
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EXPENSES
The following information is provided in order to assist you in understanding
the various costs and expenses that, as an investor in a FUND, you will bear
directly or indirectly. It should not be considered to be a representation of
past or future expenses. Actual expenses may be greater or lesser than those
shown. "Annual Operating Expenses" for the VALUE FUND are based on actual
expenses incurred for the fiscal year ending September 30, 1996. "Annual
Operating Expenses" for the INCOME FUND are the annualized operating expenses
the INCOME FUND expects to pay during the current fiscal year. The example
assumes a 5% annual rate of return pursuant to requirements of the Securities
and Exchange Commission. The hypothetical rate of return for each FUND is not
intended to be representative of past or future performance. The INCOME FUND is
new and actual operating expenses and investment return may be more or less than
those shown:
SHAREHOLDER TRANSACTION EXPENSES
<TABLE>
<CAPTION>
VALUE INCOME
FUND FUND
----- ------
<S> <C> <C>
Maximum sales load imposed on purchases..................... None None
Maximum sales load imposed on dividends..................... None None
Deferred sales load......................................... None None
Redemption fee.............................................. None* None*
Exchange fee................................................ None None
</TABLE>
ANNUAL OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
VALUE INCOME
FUND FUND
----- ------
<S> <C> <C>
Management fees............................................. 0.90% 0.70%
12b-1 fees.................................................. None None
Other expenses (net of reimbursements)...................... 0.72% 0.80%(1)
Total fund operating expenses (net of reimbursements)....... 1.62% 1.50%(1)
</TABLE>
* A fee of $10.00 is charged for each wire redemption.
(1) Other expenses and total fund operating expenses for the Income
Fund before reimbursements are estimated to be 2.47% and 3.17%,
respectively.
EXAMPLE
<TABLE>
<CAPTION>
VALUE INCOME
FUND FUND
----- ------
<S> <C> <C>
You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the
end of each time period:
1 year............................................. $ 17 $ 15
3 years............................................ $ 52 $ 48
5 years............................................ $ 89 $ 82
10 years........................................... $193 $180
</TABLE>
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<PAGE> 4
FINANCIAL HIGHLIGHTS
The following financial highlights for the VALUE FUND for the periods ended
September 30, 1988 through 1996 and for the Income Fund for the period from
January 22, 1996 (inception) through September 30, 1996 have been audited by
KPMG Peat Marwick LLP, independent certified public accountants. The financial
highlights should be read in conjunction with the financial statements and
related notes included in the FUNDS' Annual Report to Shareholders.
CONCORDE VALUE FUND
<TABLE>
<CAPTION>
FOR THE YEAR ENDED SEPTEMBER 30
---------------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989 1988*
------- ------- ------- ------- --------- --------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
year......................... $13.33 $12.28 $13.11 $11.13 $10.51 $ 8.35 $12.61 $11.29 $10.00
----- ----- ----- ----- ----- ----- ----- ----- -----
Income (loss) from investment
operations:
Net investment income........ 0.07 0.06 0.04 0.07 0.16 0.24 0.19 0.16 0.06
Net realized and unrealized
gains (losses) on
investments................ 1.73 1.47 0.55 2.05 0.71 2.12 (3.55) 1.32 1.23
----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations................ 1.80 1.53 0.59 2.12 0.87 2.36 (3.36) 1.48 1.29
----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net investment
income..................... (0.06) (0.06) (0.03) (0.14) (0.25) (0.20) (0.38) (0.13) (0.00)
Distributions from net
realized gains............. (0.12) (0.42) (1.39) (0.00) (0.00) (0.00) (0.52) (0.03) (0.00)
----- ----- ----- ----- ----- ----- ----- ----- -----
Total from distributions... (0.18) (0.48) (1.42) (0.14) (0.25) (0.20) (0.90) (0.16) (0.00)
----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value, end of year
(period)..................... $14.95 $13.33 $12.28 $13.11 $11.13 $10.51 $ 8.35 $12.61 $11.29
----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- -----
TOTAL INVESTMENT RETURN........... 13.64% 13.32% 5.04% 19.16% 8.49% 28.79% -28.04% 13.25% 12.90%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in
000's)........................... $12,580 $12,235 $12,003 $12,630 $12,532 $13,649 $11,735 $12,527 $7,416
Ratio of expenses to average net
assets........................... 1.62% 1.74% 1.69% 1.64% 1.68% 1.78% 1.75% 1.93% 2.13%
Ratio of net investment income to
average net assets............... 0.53% 0.52% 0.33% 0.54% 1.50% 2.47% 1.88% 1.32% 0.49%
Portfolio turnover rate........... 26.10% 22.42% 75.43% 71.69% 51.69% 25.36% 48.83% 32.34% 13.40%
Average commission rate paid...... $0.0551
Shares outstanding at end of year
(period)......................... 841,293 917,929 977,095 963,554 1,126,309 1,298,530 1,405,070 993,752 657,085
</TABLE>
- ---------------
* Period from December 4, 1987 (commencement of operations) through September
30, 1988. Total investment return and other ratios are not annualized.
CONCORDE INCOME FUND
<TABLE>
<CAPTION>
JANUARY 22, 1996
(INCEPTION)
THROUGH
SEPTEMBER 30,
1996*
----------------
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period..................... $10.00
----------
Income (loss) from investment operations:
Net investment income.................................. 0.25
Net realized and unrealized gains (losses) on
investments........................................... (0.18)
----------
Total from investment operations..................... 0.07
----------
Less distributions:
Dividends from net investment income................... (0.13)
Distributions from net realized gains.................. 0.00
----------
Total from distributions............................. (0.13)
----------
Net asset value, end of period........................... $9.94
----------
----------
TOTAL INVESTMENT RETURN..................................... 0.71%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)..................... $ 2,217
Ratio of expenses to average net assets.................. 2.01%
Ratio of net investment income to average net assets..... 2.51%
Portfolio turnover rate.................................. 29.77%
Average commission rate paid............................. $0.1403
Shares outstanding at end of period...................... 223,052
</TABLE>
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* Total investment return and other ratios are not annualized.
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<PAGE> 5
WHAT IS CONCORDE FUNDS, INC.?
Concorde Funds, Inc. (the "FUNDS") is a no-load open-end diversified
management investment company registered under the Investment Company Act of
1940. It was incorporated under the laws of Texas on September 21, 1987. On
November 21, 1995, the FUNDS' corporate name was changed from Concorde Value
Fund, Inc. to Concorde Funds, Inc. and it became a series investment company
with two separate series of common stock, each of which is a separate mutual
fund, namely, Concorde Value Fund (the "VALUE FUND") and Concorde Income Fund
(the "INCOME FUND"). Each FUND is described in this Prospectus in order to help
you compare the similarities and differences between the FUNDS so that you can
determine which FUND, or whether a combination of the FUNDS, best meets your
personal investment objectives. The VALUE FUND is the continuation of the
original Concorde Value Fund, Inc. As an open-end investment company the FUNDS
obtain their assets by continuously selling their shares to the public. Proceeds
from the sale of shares are invested by a FUND in securities of other companies.
In this way, the FUND:
- - Combines the resources of many investors, with each individual investor having
an interest in every one of the securities owned by the FUND;
- - Provides each individual investor with diversification by investing in the
securities of many different companies in a variety of industries; and
- - Furnishes professional portfolio management to select and watch over
investments. See "WHO MANAGES THE FUNDS?" for a discussion of the FUNDS'
investment advisor.
A FUND will redeem any of its outstanding shares on demand of the owner at the
next determined net asset value of the shares. There are no sales, redemption or
Rule 12b-1 distribution charges.
WHAT ARE THE FUNDS' INVESTMENT
OBJECTIVES AND POLICIES?
VALUE FUND. The VALUE FUND's investment objective is to produce long-term
growth of capital, without exposing capital to undue risks. The VALUE FUND will
invest principally in undervalued common stocks. The VALUE FUND's investment
advisor, Concorde Financial Corporation (the "Advisor"), considers the following
valuation criteria, among other considerations, in determining that a common
stock is undervalued: (a) price/earnings ratio; (b) price/cash flow ratio; (c)
price/intrinsic value ratio; (d) dividend yield; (e) price/sales ratio; or (f)
total capitalization/cash flow ratio. When analyzing the above criteria, the
Advisor may consider and compare the relative value of a common stock with the
following: (a) all common stocks within a particular broad-based universe; (b)
all common stocks within a particular company's industry group; or (c) a common
stock's own historical valuation history. The Advisor will use its judgment to
determine the appropriate combination of valuation criteria, among other
factors, in assessing if a common stock is undervalued. By investing in
undervalued stocks, the Advisor believes that the VALUE FUND can be in a
position to outperform the market while reducing its risk of underperforming the
market. However in investing in undervalued stocks there is the risk that
improving fundamentals may not be recognized as quickly as anticipated by the
Advisor. Therefore, there can be no assurances that the VALUE FUND's investment
objective will be achieved or that the VALUE FUND's portfolio will not decline
in value.
In selecting common stocks, the Advisor relies primarily on publicly available
information as well as research information supplied by brokerage firms. The
Advisor studies the financial statements of the issuer
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<PAGE> 6
and other issuers in the same industry. No strict formulas are used in
determining whether the characteristics of an undervalued stock are present.
No minimum or maximum percentage of the VALUE FUND's assets is required to be
invested in common stocks or any other type of security. During times when a
high level of securities prices generally prevails there may be a scarcity of
common stocks available that meet the Advisor's investment criteria. At these
times the VALUE FUND may invest in preferred stocks, particularly those which
are convertible into common stock, fixed-income securities such as U.S. Treasury
Bonds and investment grade, nonconvertible corporate bonds and debentures.
Additionally, investments in nonconvertible preferred stocks and debt securities
may be made during times when there is perceived to be a potential for growth of
capital (i.e., during periods of declining interest rates when the market value
of such securities generally increases). The VALUE FUND will limit its
investments in nonconvertible corporate bonds and debentures to those which have
been assigned one of the highest four ratings of either Standard & Poor's
Corporation (AAA, AA, A and BBB) or Moody's Investors Service, Inc. (Aaa, Aa, A
and Baa). A description of the foregoing ratings is set forth in the Statement
of Additional Information under the caption "Description of Bond Ratings."
INCOME FUND. The INCOME FUND'S primary investment objective is to produce
current income. Growth of capital is a secondary objective and will be sought
only when compatible with the primary objective. The INCOME FUND will attempt to
achieve its investment objectives by investing primarily in a diversified
portfolio of U.S. dollar denominated investment grade debt securities selected
for their income characteristics relative to the risk involved. The INCOME FUND
intends to invest between 20% and 50% of its assets in securities issued or
guaranteed by the U.S. Government, its agencies or instrumentalities with
maturities ranging from two to ten years. The balance of the portfolio will be
invested in other approved securities as the Advisor determines according to
market conditions including the following: dividend paying common stocks
(including common stocks of real estate investment trusts and royalty trusts);
preferred stocks; convertible securities; corporate debt securities, including
commercial paper; mortgage and other asset backed securities; U.S. bank
obligations, including banker's acceptances and certificates of deposit;
repurchase agreements; U.S. state and local government securities; foreign
securities; and exchange-traded master limited partnerships. During periods of
rising interest rates, a greater percentage of the INCOME FUND'S assets may be
invested in securities that are less sensitive to interest rate changes.
The INCOME FUND's principal objective is to obtain current income. However,
unlike funds investing solely for income, the INCOME FUND intends also to take
advantage of opportunities for modest capital appreciation and growth of
investment income. The INCOME FUND may purchase securities which are convertible
into, or exchangeable for, common stock when the Advisor believes they offer the
potential for higher total return than nonconvertible securities. It may also
purchase income securities that carry warrants or common stock purchase rights
attached as an added inducement to participate in the potential growth of an
issuer.
The INCOME FUND has adopted an investment policy pursuant to which it will not
purchase securities of any issuer if such purchase would at that time cause more
than 20% of the value of the INCOME FUND'S assets to be invested in securities
rated less than investment grade. Investment grade securities are (i) corporate
bonds, debentures or notes rated at least BBB by Standard & Poor's Corporation
("S&P"), or Baa by Moody's Investors Service, Inc. ("Moody's") at the time of
acquisition; and (ii) any type of unrated debt security that the Advisor
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<PAGE> 7
determines at the time of acquisition to be of a quality comparable to the
foregoing. If a security held by the INCOME FUND falls below a Baa rating by
Moody's or a BBB rating by S&P, the INCOME FUND will consider all circumstances
deemed relevant in determining whether to hold the security. Securities rated
BBB by S&P or Baa by Moody's, although investment grade, exhibit speculative
characteristics and are more sensitive than higher rated securities to changes
in economic conditions. A description of the foregoing ratings is set forth in
the Statement of Additional Information.
The INCOME FUND may invest up to 20% of its assets in securities that are
rated below investment grade. The INCOME FUND, however, will not invest in any
securities rated lower than B at the time of purchase. Investments in high yield
securities (i.e., less than investment grade), while producing greater income
and opportunity for gain than investments in higher rated securities, entail
relatively greater risk of loss of income or principal. Lower grade obligations
are commonly referred to as "Junk Bonds". Market prices of high yield, lower
grade obligations may fluctuate more than market prices of higher rated
securities. Lower grade, fixed income securities tend to reflect short-term
corporate and market developments to a greater extent than higher rated
obligations which, assuming no change in their fundamental quality, react
primarily to fluctuations in the general level of interest rates. For further
information about securities rated below investment grade, see "May the Funds
Engage in Other Investment Practices -- Low Rated Securities."
The values of the securities held by the INCOME FUND are subject to price
fluctuations resulting from various factors, including rising or declining
interest rates ("market risks") and the ability of the issuers of such
investments to make scheduled interest and principal payments ("financial
risks"). The Advisor attempts to minimize these risks when selecting investments
by taking into account interest rates, terms and marketability of obligations,
as well as the capitalization, earnings, liquidity and other indicators of the
issuer's financial condition.
The INCOME FUND may invest in zero coupon U.S. government and corporate debt
securities which do not pay current interest, but are purchased at a discount
from their face value. The market prices of zero coupon securities generally are
more volatile than the prices of securities that pay interest periodically and
in cash, and are likely to respond to changes in interest rates to a greater
degree than do other types of debt securities having similar maturities and
credit quality. The INCOME FUND may also invest in closed-end investment
companies, restricted securities, covered call options on common stock,
warrants, put bonds and variable rate securities. See "May the Funds Engage In
Other Investment Practices" for a discussion of other investment restrictions
and practices.
The FUNDS' investment objectives and the foregoing investment policies are not
fundamental and the FUNDS' Board of Directors may change the investment
objectives and such policies without shareholder approval. A change in a FUND'S
investment objective may result in the FUND having an investment objective
different from the investment objective which a shareholder considered
appropriate at the time of investment in the FUND.
DO THE FUNDS HAVE ANY INVESTMENT LIMITATIONS OR STRATEGIES DESIGNED TO REDUCE
RISK?
Each FUND has adopted certain investment limitations designed to reduce its
exposure to risk of loss of capital. The FUNDS will not purchase securities on
margin; participate in a joint-trading account; sell securities short; buy, sell
or write put or call options, except for hedging purposes as described in the
following section, or engage in futures trading. The
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<PAGE> 8
FUNDS are subject to additional investment limitations as follows:
- - Neither FUND will purchase more than 10% of the voting securities of any
issuer.
- - Neither FUND will invest more than 5% of its assets in the securities of
companies that have a continuous operating history of less than three years.*
- - Neither FUND will purchase the securities of any issuer if such purchase would
cause more than 5% of the value of the FUND's total assets to be invested in
the securities of any one issuer, exclusive of U.S. Government Securities.
- - The VALUE FUND will not invest more than 5% of its net assets in warrants.
- - Neither FUND will invest more than 25% of its assets in any one industry.
- - The VALUE FUND will not lend money (except by purchasing publicly distributed
debt securities) or lend its portfolio securities.
- - Neither FUND will borrow money except from a bank and only for temporary or
emergency purposes, and in no event in excess of 5% of the value of its total
assets, or pledge any of its assets except to secure borrowings and only to an
extent not greater than 10% of the value of the FUND's net assets.
The investment limitations described above are discussed in further detail in
the Statement of Additional Information. Except as discussed below, these
investment limitations and others set forth in the Statement of Additional
Information are fundamental policies and may be changed only with the approval
of the shareholders of the appropriate FUND as described in the Statement of
Additional Information. The Restriction marked with an asterisk (*) above is not
a fundamental policy for the INCOME FUND. Non-fundamental investment policies
may be changed without shareholder approval.
MAY THE FUNDS ENGAGE IN OTHER INVESTMENT PRACTICES?
In order to achieve their investment objectives, the FUNDS may engage in the
following investment practices in addition to those previously discussed.
PORTFOLIO LENDING. In order to realize additional income, the INCOME FUND may
lend its portfolio securities to unaffiliated persons who are deemed to be
creditworthy (principally to broker/dealers). The loans must be secured
continuously by cash collateral or U.S. government securities maintained on a
current basis in an amount at least equal to the market value, determined daily,
of the securities loaned. Cash collateral will be invested in money market
instruments. During the existence of the loan, the INCOME FUND will continue to
receive the equivalent of the interest and dividends paid by the issuer on the
securities loaned and one or more of the negotiated loan fees, interest on
securities used as collateral or interest on the securities purchased with the
collateral, either of which type of interest may be shared with the borrower.
The INCOME FUND will have the right to call the loan and obtain the securities
loaned at any time on three days' notice, including the right to call the loan
to enable the INCOME FUND to vote the securities. Such loans may not exceed 10%
of the net assets of the INCOME FUND.
PORTFOLIO TURNOVER. Consistent with the FUNDS' investment objectives, the
Advisor will not engage in trading for short-term profits, but when the
circumstances warrant, securities may be sold without regard to the length of
time held. The VALUE FUND will typically hold a stock until it reaches a
valuation level such that the Advisor believes that the stock is no longer
undervalued. The Advisor is prepared to hold stocks for several years or longer,
if necessary. The Advisor intends to purchase a given security whenever it
believes it will contribute to the stated objective of a FUND, even if the same
security has only recently been sold. In selling a given security, the Advisor
keeps in mind
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that (i) profits from sales of securities held less than three months must be
limited in order to meet the requirements of Subchapter M of the Internal
Revenue Code; and (ii) profits from sales of securities are taxable to certain
shareholders. Subject to those considerations, a FUND may sell a given security,
no matter for how long or for how short a period it has been held in the
portfolio, and no matter whether the sale is at a gain or at a loss, if the
Advisor believes that it is not fulfilling its purpose. Since investment
decisions are based on the anticipated contribution of the security in question
to the applicable FUND's objectives, the rate of portfolio turnover is
irrelevant when the Advisor believes a change is in order to achieve those
objectives, and each of the FUND's annual portfolio turnover rate may vary from
year to year.
It is expected that the VALUE FUND usually will have an annual portfolio
turnover rate of less than 75% and the INCOME FUND usually will have an annual
portfolio turnover rate of 50%, although the annual portfolio turnover rate of
each FUND may vary widely from year to year depending upon market conditions.
The annual portfolio turnover rate indicates changes in a FUND's portfolio and
is calculated by dividing the lesser of purchases or sales of portfolio
securities (excluding securities having maturities at acquisition of one year or
less) for the fiscal year by the monthly average of the value of the portfolio
securities (excluding securities having maturities at acquisition of one year or
less) owned by the FUND during the fiscal year.
High portfolio turnover (i.e., over 100%) may involve correspondingly greater
brokerage commissions and other transaction costs, which are borne directly by
the FUNDS. In addition, high portfolio turnover may result in increased
short-term capital gains which, when distributed to shareholders, are taxed at
ordinary income rates.
REPURCHASE AGREEMENTS AND OTHER SHORT-TERM INVESTMENTS. Each of the FUNDS may
enter into repurchase agreements with banks or certain non-bank broker/dealers.
In a repurchase agreement, the FUND buys an interest-bearing security at one
price and simultaneously agrees to sell it back at a mutually agreed upon time
and price. The repurchase price reflects an agreed-upon interest rate during the
time the FUND's money is invested in the security. Since the security purchased
constitutes security for the repurchase obligation, a repurchase agreement can
be considered as a loan collateralized by the security purchased. The FUND's
risk is the ability of the seller to pay the agreed-upon price on the delivery
date. If the seller defaults, the FUND may incur costs in disposing of the
collateral, which would reduce the amount realized thereon. If the seller seeks
relief under the bankruptcy laws, the disposition of the collateral may be
delayed or limited. To the extent the value of the security decreases, the FUND
could experience a loss. The FUNDS' Board of Directors has established
procedures to evaluate the creditworthiness of the other parties to repurchase
agreements.
In addition, each of the FUNDS may invest in commercial paper and other cash
equivalents rated A-1 or A-2 by S&P or Prime-1 or Prime-2 by Moody's, commercial
paper master notes (which are demand instruments bearing interest at rates which
are fixed to known lending rates and automatically adjusted when such lending
rates change) of issuers whose commercial paper is rated A-1 or A-2 by S&P or
Prime-1 or Prime-2 by Moody's and unrated debt securities which are deemed by
the Advisor to be of comparable quality. Each of the FUNDS may also invest in
United States Treasury bills and notes, and certificates of deposit of domestic
branches of U.S. banks or of Canadian banks, provided in each case that the
banks have total deposits in excess of $1,000,000,000. The FUNDS will invest in
repurchase agreements and other short-term investments only for temporary
defensive purposes or to maintain liquidity to pay potential redemption
requests. However, when investing for temporary defensive
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<PAGE> 10
purposes, up to 100% of a FUND's assets may be invested in such securities.
ILLIQUID SECURITIES. The INCOME FUND may invest up to 15% of its net assets in
illiquid securities, which may include restricted securities, repurchase
agreements maturing in more than seven days and other securities that are not
readily marketable. Securities eligible to be resold to qualified institutional
investors pursuant to Rule 144A under the Securities Act of 1933 may be
considered liquid by the INCOME FUND in accordance with guidelines approved by
the FUNDS' Board of Directors. Such guidelines take into account trading ability
for such securities, any contractual restrictions and the availability of
reliable pricing information, among other factors. Investing in Rule 144A
securities could have the effect of increasing the level of the INCOME FUND's
illiquidity to the extent that qualified institutional buyers become, for a
time, uninterested in purchasing these securities. Risks associated with
illiquid securities include the potential inability of the INCOME FUND to
promptly sell a portfolio security after its decision to sell and, with respect
to illiquid restricted securities, the INCOME FUND may be required to pay all or
a part of the registration expenses to sell the restricted security. For further
information about illiquid securities, see the Statement of Additional
Information.
LOW-RATED SECURITIES. The INCOME FUND may invest up to 20% of its assets in
securities that are rated below investment grade (i.e., rated lower than BBB by
S&P or Baa by Moody's) or in unrated securities judged by the Advisor to be of
comparable quality. The INCOME FUND, however, will not invest in any securities
rated lower than B at the time of purchase. Debt rated BB, B, CCC, CC and C and
debt rated Ba, B, Caa, Ca and C are regarded by S&P and Moody's, respectively,
as predominantly speculative with respect to the issuer's capacity to pay
interest and repay principal in accordance with the terms of the obligation. For
S&P, BB indicates the lowest degree of speculation and C the highest. For
Moody's, Ba indicates the lowest degree of speculation and C the highest. For
additional information on the ratings used by S&P and Moody's and a description
of low-rated securities, see the Statement of Additional Information.
Low-rated securities generally offer a higher yield than that available from
higher-rated securities. However, low-rated securities involve higher risks, in
that they are especially subject to adverse changes in general economic
conditions and in the industries in which the issuers are engaged, to changes in
the financial condition of the issuers and to price fluctuations in response to
changes in interest rates. During periods of economic downturn or rising
interest rates, highly leveraged issuers may experience financial stress which
could adversely affect their ability to make payments of principal and interest
and increase the possibility of default. In addition, the market for low-rated
securities has expanded rapidly in recent years.
The market for low-rated securities is generally thinner and less active than
that for higher quality securities, which would limit the INCOME FUND's ability
to sell such securities at fair value in response to changes in the economy or
the financial markets. While such securities may have some quality and
protective characteristics, these are outweighed by large uncertainties or major
risk exposure to adverse conditions. The Advisor will seek to reduce the risks
associated with investing in such securities by limiting the INCOME FUND's
holdings in such securities and by the depth of its own credit analysis. For
additional information about the risks of investing in low-rated securities, see
the Statement of Additional Information.
MORTGAGE-BACKED SECURITIES. The INCOME FUND may invest in mortgage-backed
securities. Mortgage-backed securities are securities that directly or
indirectly represent a participation in, or are secured by and payable from,
mortgage loans secured by real property. Mortgage-backed securities are subject
to
8
<PAGE> 11
prepayment risks in addition to market risks and financial risks.
Mortgage-backed securities include guaranteed government agency mortgage-
backed securities, which represent participation interests in pools of
residential mortgage loans originated by U.S. governmental or private lenders
and guaranteed, to the extent provided in such securities, by the U.S.
government or one of its agencies or instrumentalities. Such securities are
ownership interests in the underlying mortgage loans and provide for monthly
payments that are a "pass-through" of the monthly interest and principal
payments (including any prepayments) made by the individual borrowers on the
pooled mortgage loans, net of any fees paid to the guarantor of such securities
and the servicer of the underlying mortgage loans.
Mortgaged-backed securities also include collateralized mortgage obligations
("CMOs"). CMOs are securities collateralized by mortgages or mortgage-backed
securities. CMOs are issued with a variety of classes or series, which have
different maturities, and are often retired in sequence. CMOs may be issued by
governmental or non-governmental entities such as banks and other mortgage
lenders. Securities issued by entities other than governmental entities may
offer a higher yield but also may be subject to greater price fluctuations than
securities issued by governmental entities.
The INCOME FUND does not intend to invest in those mortgage-backed securities,
such as certain classes of CMOs and other types of mortgage pass-through
securities, which are designed to be highly sensitive to changes in prepayment
and interest rates and can subject the shareholder to extreme reductions of
yield and loss of principal.
ASSET-BACKED SECURITIES. The INCOME FUND may invest in asset-backed
securities. The securitization techniques used to develop mortgage-backed
securities are also applied to a broad range of assets, primarily credit card
and automobile receivables. Other types of asset-backed securities may be
developed in the future. In general, the collateral supporting asset-backed
securities is of shorter maturity than mortgage loans and is less likely to
experience substantial prepayments. Asset backed securities present certain
risks that are not presented by mortgage-backed securities. Primarily, these
securities do not have the benefit of the same security interest in the related
collateral as do mortgage-backed securities.
FOREIGN SECURITIES. The FUNDS may invest in securities of foreign issuers
which may be U.S. dollar-denominated or denominated in foreign currencies. Each
FUND may invest up to 15% of its total assets in securities of foreign issuers
that are U.S. dollar-denominated. The INCOME FUND may invest up to 10% and the
VALUE FUND may invest up to 5% of its total assets in securities of foreign
issuers denominated in foreign currencies. Securities of foreign issuers in the
form of American Depository Receipts ("ADRs") that are regularly traded on
recognized U.S. exchanges or in the U.S. over-the-counter market are not
considered foreign securities for purposes of these limitations. A FUND,
however, will not invest more than 20% of its total assets in such ADRs and will
only invest in ADRs that are issuer sponsored. Investments in securities of
foreign issuers involve risks which are in addition to the usual risks inherent
in domestic investments. The value of a FUND's foreign investments may be
significantly affected by changes in currency exchange rates, and the FUND may
incur certain costs in converting securities denominated in foreign currencies
to U.S. dollars. In many countries, there is less publicly available information
about issuers than is available in the reports and ratings published about
companies in the United States. Additionally, foreign companies are not subject
to uniform accounting, auditing and financial reporting standards. Dividends and
interest on foreign securities may be subject to foreign withholding taxes which
would reduce a FUND's income without providing a tax credit for the FUND's
shareholders. Although
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<PAGE> 12
the FUNDS intend to invest in securities of foreign issuers domiciled in nations
in which the Advisor considers as having stable and friendly governments, there
is a possibility of expropriation, confiscatory taxation, currency blockage or
political or social instability which could affect investments in those nations.
MUNICIPAL SECURITIES. The INCOME FUND may invest up to 5% of its net assets in
debt obligations issued by or on behalf of the governments of states,
territories or possessions of the United States, the District of Columbia and
their political subdivisions, agencies and instrumentalities, certain intrastate
agencies and certain territories of the United States. The INCOME FUND may
invest in both taxable and federal income tax-exempt municipal securities.
SECURITIES OF OTHER REGISTERED INVESTMENT COMPANIES. The FUNDS may invest up
to 10% of their net assets in shares of registered investment companies. The
FUNDS will not purchase or otherwise acquire shares of any registered investment
company (except as part of a plan of merger, consolidation or reorganization
approved by the shareholders of the FUNDS) if (a) the FUND and its affiliated
persons would own more than 3% of any class of securities of such registered
company; or (b) more than 5% of its net assets would be invested in the shares
of any one registered investment company.
Any investment in a registered investment company involves investment risk.
Additionally, an investor could invest directly in the registered investment
companies in which the FUND invests. By investing indirectly through a FUND, an
investor bears not only his or her proportionate share of the expenses of the
FUND (including operating costs and investment advisory fees) but also indirect
similar expenses of the registered investment companies in which the FUND
invests. An investor may also indirectly bear expenses paid by registered
investment companies in which the FUND invests related to the distribution of
such registered investment company's shares.
HEDGING INSTRUMENTS. Although the INCOME FUND does not presently intend to do
so, the FUNDS may purchase stock index put options to hedge against a loss in
its stock portfolio caused by a general decline in the stock market. If the
index declines over the life of the option contract, the put option becomes more
valuable and the FUND will enter into a closing contract. The realized gain
would offset the presumed unrealized loss in the FUND's portfolio. If the market
rises over the life of the option contract, the option will become worthless and
expire unexercised. In such event the FUND's loss on the option contract will be
limited to the premium paid.
The FUNDS may write (i.e., sell) covered call options and purchase call
options to close out previously written call options but only if (i) the
investments to which the call relates are common stock or other securities that
have equity characteristics; and (ii) the calls are listed on a domestic
securities exchange or quoted on the Nasdaq Stock Market. For a call to be
"covered," either (a) the FUND must own the underlying security or have an
absolute and immediate right to acquire that security without payment of
additional cash consideration, or for an additional consideration held as set
forth in (b), upon conversion or exchange of other securities held in its
portfolio; or (b) the FUND must maintain in a segregated account cash or liquid
securities adequate to purchase the securities, in each case until the FUND
enters into a closing purchase transaction as to that call.
WHAT REPORTS WILL I RECEIVE?
As a shareholder of the FUNDS you will be provided at least semi-annually with
a report showing each FUND's portfolio and other information. Annually, after
the close of the FUNDS' September 30 fiscal year, you will be provided with an
annual report containing audited financial statements.
An individual account statement will be sent to you by Firstar Trust Company
after each purchase, including reinvestment of dividends, or redemption of
shares of a FUND. You will
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<PAGE> 13
also receive an annual statement after the end of the calendar year listing all
your transactions in FUND shares during the year.
If you have questions about your account, you may call Firstar Trust Company
at (800) 294-1699. If you have general questions about the FUNDS or want more
information, you may call us at (972) 387-8258 or write to us at CONCORDE FUNDS,
INC., 1500 Three Lincoln Centre, 5430 LBJ Freeway, Dallas, Texas 75240,
Attention: Corporate Secretary.
WHO MANAGES THE FUNDS?
As a Texas corporation, the business and affairs of the FUNDS are managed by
its Board of Directors. Each FUND has entered into an investment advisory
agreement (the "Agreement") with the Advisor, Concorde Financial Corporation,
1500 Three Lincoln Centre, 5430 LBJ Freeway, Dallas, Texas 75240, under which
the Advisor furnishes continuous investment advisory services and management to
the FUNDS. The Advisor was formed in 1981 as an investment advisor, and since
then has advised private accounts. Gary B. Wood, Ph.D., has been President of
the Advisor since its inception, and the FUNDS' President and Senior Manager of
the management team which has advised the FUNDS since inception. The management
team for the VALUE FUND currently is comprised of Dr. Wood and three analysts,
Dennis R. Beall, Elizabeth L. Foster and John A. Stetter. Dennis R. Beall is a
Portfolio Manager with the Advisor and has been a mergers and acquisitions and
investment analyst with the Advisor since 1988. Elizabeth L. Foster, FUND
Secretary, is a Portfolio Manager with the Advisor and has been an investment
analyst with the Advisor since 1984. John A. Stetter has been a Portfolio
Manager with the Advisor since 1994. From 1988 until 1994, he was the President
of his own investment advisory firm. The management team for the INCOME FUND
currently is comprised of Dr. Wood and John A. Stetter. The Advisor is
controlled by Gary B. Wood, Ph.D.
The Advisor supervises and manages the investment portfolio of each of the
FUNDS and, subject to such policies as the Board of Directors of the FUNDS may
determine, directs the purchase or sale of investment securities in the
day-to-day management of the FUNDS. Under the Agreement, the Advisor, at its own
expense and without separate reimbursement from the FUNDS, furnishes office
space and all necessary office facilities, equipment, and executive personnel
for managing the FUNDS and maintaining its organization; bears all sales and
promotional expenses of the FUNDS, other than expenses incurred in complying
with the laws regulating the issue or sale of securities; and pays salaries and
fees of all officers and directors of the FUNDS (except the fees paid to
disinterested directors as such term is defined under the Investment Company Act
of 1940). For the foregoing, the Advisor receives a monthly fee at the annual
rate of 0.9% of the daily net assets of the VALUE FUND and 0.7% of the daily net
assets of the INCOME FUND. The rate of the annual advisory fee for the VALUE
FUND is higher than that paid by most mutual funds. The Advisor may voluntarily
waive all or any portion of the advisory fees otherwise payable by the INCOME
FUND. Such a waiver may be terminated at any time in the Advisor's discretion.
HOW IS A FUND'S SHARE PRICE
DETERMINED?
The net asset value (or "price") per share of each FUND is determined by
dividing the total value of the FUND's investments and other assets less any
liabilities, by the number of outstanding shares of the FUND. The net asset
value per share is determined once daily on each day that the New York Stock
Exchange is open, as of the close of regular trading on the Exchange (normally
3:00 P.M. Central time). Purchase orders for FUND shares accepted or FUND shares
tendered for redemption prior to the close of regular trading on a day the New
York Stock Exchange is open for trading will be valued as of the close of
trading, and purchase orders
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<PAGE> 14
accepted and FUND shares tendered for redemption after that time will be valued
as of the close of regular trading on the next trading day.
Portfolio securities that are listed on a national securities exchange or
quoted on the Nasdaq Stock Market are valued at the last sale price on the day
the valuation is made, or if not traded on the valuation date, the most recent
bid price. Other securities for which market quotations are readily available
are valued at the latest quoted bid price. Debt securities are valued at the
latest bid prices furnished by independent pricing services. Options purchased
or written by the FUNDS are valued at the closing current bid price, when
available. Other assets and securities for which no quotations are readily
available are valued at fair value as determined in good faith by the Board of
Directors. Short-term instruments (those with remaining maturities of 60 days or
less) are valued at amortized cost, which approximates market.
HOW DO I OPEN AN ACCOUNT AND PURCHASE SHARES?
BY MAIL. Please complete and sign the New Account Application form included
with this Prospectus and send it, together with your check or money order ($500
minimum for each FUND), made payable to Concorde Funds, Inc., to: CONCORDE
FUNDS, INC., c/o Firstar Trust Company, P.O. Box 701, Milwaukee, Wisconsin
53201-0701. Note: A different procedure is used for establishing Individual
Retirement Accounts ($500 minimum) and other retirement plans ($500 minimum).
Please call (972) 387-8258 for details. All purchases must be made in U.S.
dollars and checks must be drawn on U.S. banks. No cash will be accepted.
Firstar Trust Company will charge a $20 fee against a shareholder's account for
any check returned to it for insufficient funds. The shareholder will also be
responsible for any losses suffered by the FUNDS as a result.
BY OVERNIGHT OR EXPRESS MAIL. Please use the following address to insure
proper delivery: Firstar Trust Company, Mutual Fund Services, 3rd Floor, 615 E.
Michigan Street, Milwaukee, Wisconsin 53202.
BY WIRE. To establish a new account by wire please first call Firstar Trust
Company, (800) 294-1699, to advise it of the investment and the dollar amount.
This will ensure prompt and accurate handling of your investment. A completed
New Account Application form must also be sent to the FUNDS at the address above
immediately after your investment is made so the necessary remaining information
can be recorded to your account. Your purchase request should be wired through
the Federal Reserve Bank as follows:
Firstar Bank Milwaukee, Wisconsin
ABA Number 075000022
For credit to Firstar Trust M.F.S.
Account Number 112-952-137
For further credit to Concorde Funds, Inc.
(Your account name and account number)
ADDITIONAL INVESTMENTS. You may add to your account at any time by purchasing
shares by mail (minimum $100) or by wire (minimum $500) according to the
aforementioned wiring instructions. You must notify Firstar Trust Company at
(800) 294-1699 prior to sending your wire. A remittance form which is attached
to your individual account statement should accompany any investments made
through the mail, when possible. All purchase requests must include your account
registration number in order to assure that your funds are credited properly.
As a no-load mutual fund, there are no sales commissions, so all of your
investment is used to purchase shares. All shares purchased will be credited to
your account and confirmed by a statement mailed to your address. The FUNDS do
not issue stock certificates for shares purchased. You may also invest in the
FUNDS by purchasing shares through a registered broker-dealer, who may charge
you a fee, either at the time of purchase or redemption. The fee, if charged, is
retained by the broker-dealer and not remitted to the FUNDS or the Advisor. The
FUNDS may
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<PAGE> 15
accept telephone orders from broker-dealers who have been previously approved by
the FUNDS. It is the responsibility of the registered broker-dealer to promptly
remit purchase and redemption orders to Firstar Trust Company.
ALL APPLICATIONS ARE SUBJECT TO ACCEPTANCE BY THE FUNDS, AND ARE NOT BINDING
UNTIL SO ACCEPTED. THE FUNDS DO NOT ACCEPT TELEPHONE ORDERS FOR PURCHASE OF
SHARES AND RESERVE THE RIGHT TO REJECT APPLICATIONS IN WHOLE OR IN PART. The
minimum purchase amounts set forth above are subject to change at any time and
may be waived for purchases by the Advisor's employees and their family members.
Shareholders will be advised at least 30 days in advance of any increases in
such minimum amounts and the FUNDS' prospectus will be appropriately
supplemented. Applications without Social Security or Tax Identification numbers
will not be accepted.
HOW DO I SELL MY SHARES?
At any time during normal business hours you may request the FUNDS to redeem
your shares in whole or in part. Written redemption requests must be directed to
CONCORDE FUNDS, INC., c/o Firstar Trust Company, P.O. Box 701, Milwaukee,
Wisconsin 53201-0701. If a redemption request is inadvertently sent to the FUNDS
at its corporate address, it will be forwarded to Firstar Trust Company, but the
effective date of redemption will be delayed until the request is received by
Firstar Trust Company. Requests for redemption which are subject to any special
conditions or which specify an effective date other than as provided herein
cannot be honored.
A redemption request must be received in "Good Order" by Firstar Trust Company
for the request to be processed. "Good Order" means the request for redemption
must include:
- - Your letter of instruction specifying the name of the FUND and either the
number of shares or the dollar amount of shares to be redeemed. The letter of
instruction must be signed by all registered shareholders exactly as the
shares are registered and must include your account registration number and
the additional requirements listed below that apply to the particular account.
<TABLE>
<CAPTION>
TYPE OF REGISTRATION REQUIREMENTS
<S> <C>
Individual, Joint Tenants, Redemption request signed
Sole Proprietorship, by all person(s) required
Custodial (Uniform Gift to to sign for the account,
Minors Act), General Partners exactly as it is
registered.
Corporations, Associations Redemption request and a
corporate resolution,
signed by person(s)
required to sign for the
account, accompanied by
signature guarantee(s).
</TABLE>
<TABLE>
<CAPTION>
TYPE OF REGISTRATION REQUIREMENTS
<S> <C>
Trusts Redemption request signed
by the trustee(s) with a
signature guarantee. (If
the Trustee's name is not
registered on the
account, a copy of the
trust document certified
within the last 60 days
is also required).
</TABLE>
- - Signature guarantees if proceeds of redemption are to be sent by wire
transfer, to a person other than the registered holder, to an address other
than the address of record, and if a redemption request includes a change of
address within 15 days of request. Transfers of shares also require signature
guarantees. Signature guarantees may be obtained from any commercial bank or
trust company in the United States or a member of the New York Stock Exchange
and some savings and loan associations.
Shareholders who have an IRA or other retirement plan must indicate on their
redemption request whether or not to withhold federal income tax. Redemption
requests not indicating an election to have federal tax withheld will be subject
to
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<PAGE> 16
withholding. If you are uncertain of the redemption requirements, please
contact, in advance, Firstar Trust Company.
The redemption price per share for each FUND is the next determined net asset
value after Firstar Trust Company receives a redemption request in "Good Order".
The amount paid will depend on the market value of the investments in the
appropriate FUND's portfolio at the time of determination of net asset value,
and may be more or less than the cost of the shares redeemed. Payment for shares
redeemed will be mailed to you typically within one or two days, but no later
than the seventh day after receipt by Firstar Trust Company of the redemption
request in "Good Order" unless a FUND is requested to redeem shares for which it
may not yet have received good payment (e.g. cash, bank money order or certified
check on a U.S. bank.) In such event the FUND may delay the mailing of a
redemption check until such time as it has assured itself that good payment for
the purchase price of the shares has been collected. (It will normally take up
to 3 days to clear local personal or corporate checks and up to 7 days to clear
other personal and corporate checks.) Wire transfers may be arranged through
Firstar Trust Company who will assess a $10.00 wiring charge against your
account.
You may redeem shares of the FUNDS by telephone. To redeem shares by
telephone, you must check the appropriate box on the New Account Application as
the FUNDS do not make this feature available to shareholders automatically. Once
this feature has been requested, you may redeem shares by phoning Firstar Trust
Company at 1-800-294-1699 or 1-414-765-4124 and giving the account name, account
number and either the number of shares or the dollar amount to be redeemed. For
your protection, you may be asked to give the social security number or tax
identification number listed on the account as further verification. Proceeds
redeemed by telephone will be mailed or wired only to your address or bank of
record as shown on the records of Firstar Trust Company. Telephone redemptions
must be in amounts of $1,000 or more. If the proceeds are sent by wire, a $10.00
wire fee will apply.
In order to arrange for telephone redemptions after a FUND account has been
opened or to change the bank, account or address designated to receive
redemption proceeds, you must send a written request to Firstar Trust Company.
The request must be signed by each registered holder of the account with the
signatures guaranteed by a commercial bank or trust company in the United
States, a member firm of the New York Stock Exchange or other eligible guarantor
institution. Further documentation may be requested from corporations,
executors, administrators, trustees and guardians.
The FUNDS reserve the right to refuse a telephone redemption if it believes it
is advisable to do so. Procedures for redeeming shares of the FUNDS by telephone
may be modified or terminated by the FUNDS at any time. Neither the FUNDS nor
Firstar Trust Company will be liable for following instructions for telephone
redemption transactions which they reasonably believe to be genuine, provided
reasonable procedures are used to confirm the genuineness of the telephone
instructions, but may be liable for unauthorized transactions if they fail to
follow such procedures. These procedures include requiring you to provide some
form of personal identification prior to acting upon your telephone instructions
and recording all telephone calls.
You should be aware that during periods of substantial economic or market
change, telephone or wire redemptions may be difficult to implement. If you are
unable to contact Firstar Trust Company by telephone, you may redeem shares by
delivering the redemption request to Firstar Trust Company by mail as described
above.
The FUNDS reserve the right to redeem the shares held in any account if at the
time of any transfer or redemption of shares in the
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<PAGE> 17
account, the value of the remaining shares in the account falls below $250. You
will be notified in writing that the value of your account is less than the
minimum and allowed at least 60 days to make an additional investment. The
receipt of proceeds from the redemption of shares held in an Individual
Retirement Account will constitute a taxable distribution of benefits from the
IRA unless a qualifying rollover contribution is made. Involuntary redemptions
will not be made because the value of shares in an account falls below $250
solely because of a decline in a FUND's net asset value.
Your right to redeem shares of the FUNDS will be suspended and your right to
payment postponed for more than seven days for any period during which the New
York Stock Exchange is closed because of financial conditions or any other
extraordinary reason and may be suspended for any period during which (a)
trading on the New York Stock Exchange is restricted pursuant to rules and
regulations of the Securities and Exchange Commission, (b) the Securities and
Exchange Commission has by order permitted such suspension or (c) such
emergency, as defined by rules and regulations of the Securities and Exchange
Commission, exists as a result of which it is not reasonably practicable for a
FUND to dispose of its securities or fairly to determine the value of its net
assets.
MAY SHAREHOLDERS EXCHANGE SHARES?
You may exchange your shares for shares in the other FUND at any time. The
registration of the account from which the exchange is being made and the amount
to which the exchange is made must be identical. State securities laws may
restrict your ability to make exchanges.
Exchange requests are subject to a $500 minimum, except for telephone
exchanges which are subject to a $1,000 minimum. The value to be exchanged and
the price of the shares being purchased will be the net asset value next
determined after receipt of instructions for the exchange. AN EXCHANGE FROM ONE
FUND TO ANOTHER IS TREATED THE SAME AS AN ORDINARY SALE AND PURCHASE FOR FEDERAL
INCOME TAX PURPOSES AND YOU WILL REALIZE A CAPITAL GAIN OR LOSS. THIS IS NOT A
TAX-FREE EXCHANGE. There are no fees charged on exchange requests. Exchange
requests should be directed to Firstar Trust Company. The FUNDS reserve the
right to modify or terminate the exchange privilege upon 60 days' written notice
to each shareholder prior to the modification or termination taking effect. The
responsibility of the FUNDS and Firstar Trust Company for the authenticity of
telephone exchange instructions is limited as described under "How Do I Sell My
Shares."
WHAT ABOUT DIVIDENDS, CAPITAL GAINS DISTRIBUTIONS AND TAXES?
Each FUND intends normally to distribute substantially all of its net
investment income and net realized capital gains to its shareholders so as to
avoid paying income tax on its net investment income and net realized capital
gains or being subject to a federal excise tax on undistributed net investment
income or net realized capital gains. The INCOME FUND will pay dividends
quarterly. The record date for such dividends normally will be in March, June,
September and December. The record date for the VALUE FUND's dividends normally
will be in December.
For federal income tax purposes, distributions by the FUNDS, whether invested
by you in additional shares or received by you in cash, will be taxable to you
as either ordinary income or capital gains. You will be notified annually as to
the federal tax status of dividends and distributions, including the eligibility
of dividends for the dividends received deduction for corporations.
In addition to federal taxes, you may also be subject to state and local
taxes, depending on the laws of your home state and locality.
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<PAGE> 18
MAY SHAREHOLDERS REINVEST DIVIDENDS?
You may elect to have all dividends and capital gains distributions reinvested
or paid in cash. Please refer to the share purchase application form
accompanying this Prospectus for further information. If you do not specify an
election, all dividends and capital gains distributions will automatically be
reinvested in full and fractional shares of the appropriate FUND calculated to
the nearest 1,000th of a share. Shares are purchased at the net asset value in
effect on the business day after the dividend record date and are credited to
your account on the dividend payment date. Cash dividends are also paid on such
date. You will be advised of the number of shares purchased and the price
following each reinvestment. An election to reinvest or receive dividends and
distributions in cash will apply to all shares of the FUND registered in your
name, including those previously purchased.
You may change an election at any time by notifying the FUNDS in writing. If
such a notice is received between a dividend declaration date and payment date,
it will become effective on the day following the payment date. The FUNDS may
modify or terminate its dividend reinvestment program at any time on thirty
days' notice to participants.
WHAT RETIREMENT PLANS DO THE FUNDS OFFER?
The FUNDS offer the following retirement plans that may fit your needs and
allow you to shelter some of your income from taxes:
- - INDIVIDUAL RETIREMENT ACCOUNT ("IRA"). Individual shareholders may establish
their own tax-sheltered IRA. Earnings on amounts held in the IRA are not taxed
until withdrawal.
- - SIMPLIFIED EMPLOYEE PENSION PLAN (SEP/IRA). The SEP/IRA is a pension plan in
which the employer contributes to an IRA. The SEP/IRA is also available to
self-employed individuals.
- - RETIREMENT PLANS. The plans, including both a profit-sharing plan and a
pension plan, are available for use by sole proprietors, partnerships and
corporations.
- - 403(B)(7) PLAN. The 403(b)(7) plan is available for use by employees of
certain educational, non-profit hospital and charitable corporations.
- - 401(K) PLAN. The 401(k) plan is a cash or deferred arrangement profit-sharing
plan available to employers of all sizes to benefit their employees.
Contact the FUNDS for complete information kits, including forms, concerning
the above plans, their benefits, provisions and fees. Consultation with a
competent financial and tax advisor regarding these plans is recommended.
WHAT ABOUT BROKERAGE TRANSACTIONS?
Each Agreement authorizes the Advisor to select the brokers or dealers that
will execute the purchases and sales of the FUNDS' portfolio securities. In
placing purchase and sale orders for the FUNDS, it is the policy of the Advisor
to seek the best execution of orders at the most favorable price in light of the
overall quality of brokerage and research services provided.
Each Agreement permits the Advisor to cause the FUNDS to pay a broker which
provides brokerage and research services to the Advisor a commission for
effecting securities transactions in excess of the amount another broker would
have charged for executing the transaction, provided the Advisor believes this
to be in the best interests of the FUNDS. Although the FUNDS do not intend to
market shares through intermediary broker-dealers, the FUNDS may place portfolio
orders with broker-dealers who recommend the purchase of shares to clients if
the Advisor believes the commissions and transaction quality are comparable to
that available from other brokers and allocate portfolio brokerage on that
basis.
16
<PAGE> 19
GENERAL INFORMATION ABOUT THE FUNDS
DESCRIPTION OF SHARES AND VOTING RIGHTS. The FUNDS' authorized capital
consists of a single class of 30,000,000 shares of Common Stock, $1.00 par
value. The Common Stock is divisible into an unlimited number of "series," each
of which is a separate FUND. Each share of a FUND represents an equal
proportionate interest in that FUND. Shareholders are entitled: (i) to one vote
per full share of Common Stock; (ii) to such distributions as may be declared by
the FUNDS' Board of Directors out of funds legally available; and (iii) upon
liquidation, to participate ratably in the assets available for distribution.
There are no conversion or sinking fund provisions applicable to the shares, and
the holders have no preemptive rights and may not cumulate their votes in the
election of directors. Consequently, the holders of more than 50% of the shares
of Common Stock voting for the election of directors can elect the entire Board
of Directors and in such event the holders of the remaining shares voting for
the election of directors will not be able to elect any person or persons to the
Board of Directors. The shares are redeemable and are transferable. All shares
issued and sold by the FUNDS will be fully paid and non-assessable. Fractional
shares of Common Stock entitle the holder to the same rights as whole shares.
The Board of Directors may classify or reclassify any unissued shares of the
FUNDS and may designate or redesignate the name of any outstanding series of
shares of the FUNDS. As a general matter, shares are voted in the aggregate and
not by series, except where voting by series would be required by Texas law or
the Investment Company Act of 1940 (e.g., a change in investment policy or
approval of an investment advisory agreement). All consideration received from
the sale of shares of any series of the FUNDS' shares, together with all income,
earnings, profits and proceeds thereof, belong to that series and will be
charged with the liabilities in respect of that series and of that series' share
of the general liabilities of the FUNDS in the proportion that the total net
assets of the series bear to the total net assets of all series of the FUNDS'
shares. The net asset value of a share of any series is based on the assets
belonging to that series less the liabilities charged to that series and
dividends may be paid on shares of any series of Common Stock only out of
lawfully available assets belonging to that series. In the event of liquidation
or dissolution of the FUNDS, the holders of each series will be entitled out of
the assets of the FUNDS available for distribution, to the assets belonging to
that series.
CUSTODIAN AND TRANSFER AND DIVIDEND DISBURSING AGENT. Firstar Trust Company,
Milwaukee, Wisconsin, is the custodian for all securities and cash of the FUNDS
and serves as the FUNDS' transfer and dividend disbursing agent.
WHAT HAS BEEN THE FUNDS' PERFORMANCE?
PERFORMANCE INFORMATION.
The FUNDS may provide performance data from time to time in advertisements,
reports to shareholders and other communications with shareholders.
FUND performance may be shown by presenting one or more performance
measurements, including "average annual total return", "total return",
"cumulative total return" and "yield."
Average annual total return and total return figures measure both the net
investment income generated by, and the effect of any realized and unrealized
appreciation or depreciation of, the underlying investments in a FUND for the
stated period, assuming the reinvestment of all dividends. Thus, these figures
reflect the change in the value of an investment in a FUND during a specified
period. Average annual total return figures are annualized and, therefore,
represent the average annual percentage change over the period in question.
Total return figures are not annualized and represent the aggregate
17
<PAGE> 20
percentage of dollar value change over the period in question. Cumulative total
return reflects a FUND's performance over a stated period of time.
A FUND's yield is a measure of the net investment income per share earned by
the FUND over a specified one-month period expressed as a percentage of the
maximum offering price of the FUND's shares at the end of the period. Yield is
an annualized figure, which means that it is assumed that the FUND generates the
same level of net investment income over a one-year period. Net investment
income is assumed to be compounded semiannually when it is annualized.
The FUNDS may also compare their performance to other mutual funds with
similar investment objectives and to the industry as a whole as reported by
Lipper Analytical Services, Inc., Morningstar OnDisc, Money, Forbes, Business
Week and Barron's magazines and The Wall Street Journal, (Lipper Analytical
Services, Inc. and Morningstar OnDisc are independent ranking services that rank
mutual funds based upon total return performance.) The FUNDS may also compare
their performance to the Dow Jones Industrial Average, NASDAQ Composite Index,
NASDAQ Industrials Index, Value Line Composite Index, the Standard & Poor's 500
Stock Index, the Standard & Poor's/Barra Value Index, the Consumer Price Index
and the Lehman Brothers Intermediate Government/Corporate Index.
The calculations in the graphs displayed below assume reinvestment of all
dividends and reflect the effect of all recurring fees.
Concorde Value Fund
Performance Comparison
9/30/96 Value of $10,000 invested on 12/4/87
[GRAPH]
<TABLE>
<CAPTION>
Dec. 87 Sep. 88 Sep. 89 Sep. 90 Sep. 91 Sep. 92 Sep. 93 Sep. 94 Sep. 95 Sep. 96
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
S&P 500 10,761 12,173 16,190 14,693 19,274 21,405 24,183 25,075 32,520 39,119
Concorde Value 9,800 11,291 12,787 9,203 11,852 12,857 15,324 16,098 18,243 20,737
</TABLE>
Average Annual Total Return
<TABLE>
<S> <C>
12 months 12.64
3 years 10.57
5 years 11.84
Since inception 9.61
</TABLE>
18
<PAGE> 21
MANAGEMENT'S DISCUSSION OF VALUE FUND PERFORMANCE. The VALUE FUND's total
return of 13.64% during the twelve-month period ended September 30, 1996,
compares favorably to total returns of 10.87% for the Wilshire Mid-Cap Value
Index and 11.44% for the S&P Barra Value Index. For the same period, the S&P 500
recorded a total return of 20.29%, while the NASDAQ Composite Index rose 17.56%
and the Russell 2000 rose 13.19%.
The VALUE FUND generated positive returns during each of the four fiscal year
quarters. Positive contributions came from stocks in the energy and natural
resources (Total ADR, Potash Corporation), financial services (American
Travellers Corporation, Delphi Financial Group, State Street Boston), health
care (Johnson & Johnson, Merck, US Healthcare) and retail (Younkers, Inc.)
industries. The energy sector benefited from rising oil and gas prices, a pickup
in worldwide exploration activity and increasing expectations of industry growth
over the next several years. Financial services, particularly brokerage and
insurance firms, benefited from a generally positive interest rate and capital
markets environment. In addition, American Travellers Corporation and Younkers,
Inc., were targets of industry takeover activity and contributed significantly
to the VALUE FUND's fiscal year performance. Health care stocks responded
positively to outstanding near term earnings results and expectations for
continued growth in the future.
Some industry groups did not perform as well: consumer durables (O'Sullivan
Industries, Sun Coast Industries), transportation (Southwest Airlines),
technology (Texas Instruments, Teradyne, LTX Corporation) and utilities (Destec
Energy). Underperformance was generally the result of individual company
earnings or operating performance rather than industry-wide weakness.
Semiconductor and technology stocks were an exception because of the 1996
industry slowdown exceeding most expectations. Other individual stocks
contributing to sub-par performance included Alcan Aluminum, Cyprus AMAX
Minerals, Superior Industries, Tandycrafts, and Tele-Communications, Inc.
The graph displayed above shows that the VALUE FUND's performance since
December 4, 1987 (inception) has lagged the performance of the S&P 500, a
broad-based market index. More recently, the VALUE FUND has performed more in
line with the S&P 500 Index and selected value indices. The graph below shows
total return performance for the three-year period from September 30, 1991 to
September 30, 1996 for the VALUE FUND, the S&P 500, the S&P/Barra Value Index,
and the Wilshire Mid Cap Value Index. As the graph indicates, the FUND's
three-year performance compares more favorably to the value indices than to the
S&P 500. The S&P 500 is an index representing the aggregate market value of the
common equity of 500 stocks primarily traded on the NYSE (New York Stock
Exchange), and they tend to be larger-cap stocks. The stocks in the VALUE FUND's
portfolio are small-, medium- and large-capitalization, and the FUND is
currently considered a medium capitalization fund. As a result, its stocks more
closely match the stocks in these selected value indices, based on
capitalization and other factors which the Advisor uses to determine that an
individual stock is undervalued. (See "WHAT ARE THE FUNDS' INVESTMENT OBJECTIVES
AND POLICIES?").
19
<PAGE> 22
Concorde Value Fund
Performance Comparison
9/30/96 Value of $10,000 Invested on 9/30/93
[GRAPH]
<TABLE>
<CAPTION>
Sept. 93 Sept. 94 Sept. 95 Sept. 96
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Concorde Value 10,000.00 10,505.00 11,905.00 13,532.00
Wilshire MidCap Value 10,000.00 9,769.00 12,341.00 13,682.00
Barra Value 10,000.00 10,243.00 12,755.00 14,627.00
S&P 500 10,000.00 10,369.00 13,447.00 16,170.00
</TABLE>
The S&P 500 is an index representing the aggregate market value of the common
equity of 500 stocks primarily traded on the NYSE (New York Stock Exchange), and
they tend to be larger-cap stocks.
The S&P Barra Value Index is constructed by dividing the stocks in the S&P 500
Index according to their price-to-book ratios. The index contains firms with
lower price-to-book ratios and has 50% of the capitalization of the S&P 500
Index. Although the Index is created based on price-to-book ratios, the
companies in the Index generally have these characteristics as well: low price-
to-earnings ratios, high dividend yields, and low historical and predicted
earnings growth. Because of these characteristics, the S&P Barra Value Index has
had higher weights in the Energy, Utility, and Financial sectors than the S&P
500. Companies in these sectors tend to have betas less than 1.00 with respect
to the S&P 500; consequently, the beta of the S&P Barra Value Index has ranged
between 0.85 and 1.00 since 1975.
The Wilshire Mid-Cap Value Index is comprised of securities that (a) fall
between the 501st and 1250th largest companies in the Wilshire 5000, an index of
all actively traded common stocks in the United States, and (b) that fit
Wilshire Asset Management's value stock characteristics. Those characteristics
include a high dividend yield, lower, stable earnings growth, low return on
equity, low price/book ratio, low price/earnings ratio and low beta.
Average Annual Total Return
<TABLE>
<S> <C>
1 year 13.84
3 years 10.61
5 years 11.54
Since inception 6.61%
</TABLE>
20
<PAGE> 23
CONCORDE INCOME FUND
PERFORMANCE COMPARISON
9/30/96 Value of $10,000 Invested on 1/22/96
[GRAPH]
<TABLE>
<CAPTION>
1/22 96 Jan. 96 Feb. 96 Mar. 96 Apr. 96 May 96 June 96 Jul. 96 Aug. 96 Sep. 96
------- ------- ------- ------- ------- ------ ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lehman Bros Intermediate
Gov/Corp Index 10,000.00 10,112.00 9,993.69 9,942.72 9,907.92 9,900.00 10,004.00 10,034.00 10,042.00 10,182.00
Concorde Income 10,000.00 10,020.00 9,900.00 9,900.00 9,939.00 9,770.00 9,888.00 9,790.00 9,890.00 10,071.00
</TABLE>
The Lehman Brothers Intermediate Government/Corporate Index contains a group
of bonds with maturities between 1.00 and 9.99 years. The group is a subset of
approximately 4,000 publicly issued corporate and U.S. Government debt rated BAA
or better, and each issue has at least $100 million par amount outstanding.
Average Annual Total Return
<TABLE>
<S> <C>
1 year n/a
3 years n/a
Since inception 0.71%
</TABLE>
MANAGEMENT'S DISCUSSION OF INCOME FUND PERFORMANCE. The INCOME FUND initiated
operations on January 22, 1996 and utilized its flexible income approach to
gradually become fully invested by the end of the fiscal year. The first
dividend of $0.13 per share was declared and distributed in late September, with
quarterly dividend distributions anticipated in the future. Total return for the
period from inception through September 30, 1996, was 0.71%, compared to the
Lehman Brothers Intermediate Government/Corporate Index, which posted a total
return of 1.83% for the same period. The US Treasury and Agency securities in
the INCOME FUND turned in slightly negative total returns, while the equity-
oriented securities in the portfolio recorded gains resulting in total positive
performance for the entire portfolio.
The INCOME FUND has the flexibility to emphasize various income-oriented asset
classes. After interest rates rose through July 1996, the Advisor concluded that
the bond market offered greater value than equity-oriented income securities,
and the portfolio was adjusted accordingly by emphasizing the fixed income
portion. As it turns out, the equity market continued to outperform the bond
market into the third quarter. Despite its underweighting, the equity portion of
the portfolio performed well as the stock market continued to rise.
21
<PAGE> 24
Fixed income securities held during the period consisted primarily of US
Treasury and Agency Notes and corporate preferred stocks. As the INCOME FUND
became more fully invested over time, the average maturity of the bond positions
was lengthened to approximately 6.7 years at September 30, 1996, indicating a
moderately bullish approach to the bond market. Preferred stocks, which
typically move in line with the fixed income market, turned in a positive total
return, primarily because of their high dividends.
Equities, which include income-producing common and convertible preferred
stocks, provided significant total returns as the effect of the positive equity
market environment outweighed the effect of interest rate movements. Although
individual returns varied, financial and real estate issues were responsible for
the majority of the total equity return of the portfolio. Of particular note,
Bankers Trust, Capstead Mortgage and First Industrial Realty recorded gains
while Hanson PLC, ARCO Exchangeable Notes and GTE Corporation incurred losses.
22
<PAGE> 25
DIRECTORS OF THE FUND
JOHN R. BRADFORD, Ph.D.
Vice President of Development of Compliance Services Group, Inc.
GILBERT F. HARTWELL
Chairman of the Board of Hartwell's Office World, Inc.
JOHN H. WILSON
President of U.S. Equity Corporation
GARY B. WOOD, Ph.D.
President, Treasurer and a director of Concorde Financial Corporation and
Concorde Capital Corporation; Chairman of the Board and a director of OmniMed
Corporation and International Hospital Corporation
OFFICERS OF THE FUND
GARY B. WOOD, Ph.D.
President and Treasurer
ELIZABETH L. FOSTER
Secretary
CUSTODIAN, TRANSFER AGENT AND
DIVIDEND DISBURSING AGENT
Firstar Trust Company
Mutual Fund Services, 3rd Floor
615 East Michigan Street
Milwaukee, Wisconsin 53202
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
KPMG Peat Marwick LLP
200 Crescent Court
Suite 300
Dallas, Texas 75201
LEGAL COUNSEL
Foley & Lardner
777 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
- --------------------------------------------------------------------------------
SPECIAL SERVICES AVAILABLE
Individual Retirement Account ("IRA")
Simplified Employee Pension Plan ("SEP/IRA")
Defined Contribution Retirement Plans
(Profit Sharing Plan and Pension Plan for
sole proprietors, partnerships and corporations)
Section 401(k) Plan
Section 403(b)(7) Plan
Dividend Reinvestment Plan
<PAGE> 26
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<PAGE> 27
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<PAGE> 28
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<PAGE> 29
Table of Contents
<TABLE>
<CAPTION>
PAGE NO.
---------------
<S> <C>
A MESSAGE FROM THE PRESIDENT
OF CONCORDE FINANCIAL CORPORATION... ii
EXPENSES.............................. 1
FINANCIAL HIGHLIGHTS.................. 2
WHAT IS CONCORDE FUNDS, INC.? ........ 3
WHAT ARE THE FUNDS' INVESTMENT
OBJECTIVES AND POLICIES?............ 3
DO THE FUNDS HAVE ANY INVESTMENT
LIMITATIONS OR STRATEGIES DESIGNED
TO REDUCE RISK?..................... 5
MAY THE FUNDS ENGAGE IN OTHER
INVESTMENT PRACTICES?............... 6
WHAT REPORTS WILL I RECEIVE?.......... 10
WHO MANAGES THE FUNDS?................ 11
HOW IS A FUND'S SHARE PRICE
DETERMINED?......................... 11
HOW DO I OPEN AN ACCOUNT AND PURCHASE
SHARES?............................. 12
HOW DO I SELL MY SHARES?.............. 13
MAY SHAREHOLDERS EXCHANGE SHARES?..... 15
WHAT ABOUT DIVIDENDS, CAPITAL GAINS
DISTRIBUTIONS AND TAXES?............ 15
MAY SHAREHOLDERS REINVEST
DIVIDENDS?.......................... 16
WHAT RETIREMENT PLANS DO THE FUNDS
OFFER?.............................. 16
WHAT ABOUT BROKERAGE TRANSACTIONS?.... 16
GENERAL INFORMATION ABOUT THE FUNDS... 17
WHAT HAS BEEN THE FUNDS'
PERFORMANCE?........................ 17
No person has been authorized to give any information
or to make any representations other than those
contained in this Prospectus and the Statement of
Additional Information dated January 31, 1997, and, if
given or made, such information or representation may
not be relied upon as having been authorized by
Concorde Funds, Inc. This Prospectus does not
constitute an offer to sell securities in any state or
jurisdiction in which such offering may not lawfully be
made.
</TABLE>
LOGO
APPLICATION AND PROSPECTUS
Dallas, Texas
January 31, 1997
<PAGE> 30
<TABLE>
<S> <C>
LOGO NEW ACCOUNT APPLICATION
PLEASE MAIL IN THE ENCLOSED RETURN ENVELOPE TO:
CONCORDE FUNDS, C/O FIRSTAR TRUST COMPANY
POST OFFICE BOX 701, MILWAUKEE, WISCONSIN 53201-0701
</TABLE>
NEW ACCOUNT REGISTRATION (PLEASE TYPE OR PRINT)
Note: Do not use this application for IRAs, SEPs or if establishing one of the
Fund's prototype retirement plans. Please call 1-800-294-1699 or
1-972-387-8258 for the appropriate application.
- --------------------------------------------------------------------------------
Owner (Individual, Corporation, Partnership, Trust) Social Security/Taxpayer
I.D. Number
- --------------------------------------------------------------------------------
Co-Owner* (if any) Social Security/Taxpayer I.D. Number
- --------------------------------------------------------------------------------
Mailing Address (Individuals should provide their residence address)
( )
- --------------------------------------------------------------------------------
City State Zip Code Daytime Phone
*Indicate nature of co-ownership:
[ ] Community Property (No Right of Survivorship)
[ ] Joint Tenants with Rights of Survivorship
[ ] Tenants in Common
[ ] Other (Please specify):
-------------------------------------------------
Any registration in the names of two or more co-owners will be without right of
survivorship, unless otherwise specified. Shares may be registered in the name
of a custodian for a minor under applicable state law. In such cases, the name
of the state should be indicated, and the taxpayer identification or social
security number should be that of the minor. Shares registered in the name of a
trust should also identify the name(s) of Trustee(s) and Trust date.
INITIAL INVESTMENT (MINIMUM $500)
Please establish my account in [ ] Concorde Value Fund [ ] Concorde Income
Fund. (Share certificates will not issued.)
<TABLE>
<S> <C>
[ ] By Check: I have enclosed a check made payable to Concorde Value
Fund or Concorde Income Fund for $
----------------------
[ ] By Wire: $ ------------------------------------------------------
Amount
--------------------------------------------------------
Date of Wire
</TABLE>
A. Call 1-800-294-1699 to insure proper credit
B. Complete and return this application
C. Wire your investment through any Federal Reserve bank, as follows:
Firstar Bank Milwaukee, Wisconsin ABA Number 075000022
For credit to Firstar Trust M.F.S. Account Number 112-952-137
For further credit to Concorde Funds,
--------------------------------------
(Your Account Name)
ELECTION REGARDING DISTRIBUTIONS
If no option is checked, all distributions will be reinvested.
[ ] I would like all distributions to be reinvested in my account.
[ ] I would like dividends to be paid in cash and capital gains reinvested.
[ ] I would like all distributions to be paid to me in cash.
TELEPHONE REDEMPTION (OPTIONAL)
[ ] Permits the redemption of a minimum of $1,000. The proceeds will be mailed
to the address above or deposited to your bank account.
------------------------------------------------------------------------------
Name on Bank Account
------------------------------------------------------------------------------
Bank Name Account Number
------------------------------------------------------------------------------
Bank Address
To ensure proper crediting to your bank account, please attach a deposit slip
for the accounts shown above.
* A $10.00 fee will be applied to any redemption when the proceeds are wired.
SIGNATURE AND CERTIFICATION
I have received and read the Prospectus for Concorde Funds, Inc., ("Fund"). I
understand the Fund's investment objectives and policies and agree to be bound
by the terms of the Prospectus. I am of legal age in my state of residence and
have full authority to purchase shares of the Fund and to establish and use any
related privileges.
UNDER THE PENALTY OF PERJURY, I CERTIFY THAT (1) THE SOCIAL SECURITY NUMBER OR
TAXPAYER IDENTIFICATION NUMBER SHOWN ON THIS FORM IS MY CORRECT TAXPAYER
IDENTIFICATION NUMBER, AND (2) I AM NOT SUBJECT TO BACKUP WITHHOLDING EITHER
BECAUSE I HAVE NOT BEEN NOTIFIED BY THE INTERNAL REVENUE SERVICE (IRS) THAT I AM
SUBJECT TO BACKUP WITHHOLDING AS A RESULT OF A FAILURE TO REPORT ALL INTEREST OR
DIVIDENDS, OR THE IRS HAS NOTIFIED ME THAT I AM NO LONGER SUBJECT TO BACKUP
WITHHOLDING. THE IRS DOES NOT REQUIRE YOUR CONSENT TO ANY PROVISION OF THIS
DOCUMENT OTHER THAN THE CERTIFICATIONS REQUIRED TO AVOID BACKUP WITHHOLDING.
- --------------------------------------------------------------------------------
Signature of Individual Date
- --------------------------------------------------------------------------------
Signature of Joint Owner Date
- --------------------------------------------------------------------------------
Signature of Authorized Officers, Partners, Date
Trustees or Others
